Boeing Signs Major MAX 8 Deals
On Friday, Boeing announced that it had successfully signed two major deals involving the sale of about 150 of their fan favorite 737 MAX jets. In the agreement, the U.S. aerospace firm is expected to get a hefty payday since the jets are priced at $18 billion.
Green Africa Airways, a Nigerian-based company, is said to be heavily involved in the deal. The details show that they are committed to forking out a good amount to receive 100 MAX 8 aircraft. Of the 100 planes, 50 are going to be firm aircraft and 50 will be options.
The Green Africa Airways deal is projected to have cost them a massive $11.7 billion. While they are committed to paying up the amounts, those in the know believe that the company is currently pursuing a couple of discounted deductions from the U.S. manufacturer.
Having not been in the game for a long time, the African-based startup is looking to conquer the local skies before going big on the pan-African scene.
From their projections, Boeing believes that over the next 2 decades, African airlines will need to acquire at least 1,190 new planes. Their Commercial Market Outlook department arrived at this figure after carefully studying the optics that can play out over the continent.
On to the Next One
In the second deal, the Seattle planemaker divulged to members of the press that they were in close contact with Flyadeal, a popular Middle East carrier.
During the Friday brief, Boeing shard that Flyadeal wanted to get their hands on 30 737 MAX 8 jets. In addition, there’s an optional clause to pick up 20 or more planes in the future.
Given the fact that Flyadeal operates as a subsidiary of Saudi Arabian Airlines, it’s little wonder that their focus is currently to expand their domestic operations. Insiders have shared that the deal’s list price is as high as $5.9 billion.
In another revelation, Boeing has come to the fore with the announcement that the 737 MAX has been selling like hotcakes. So much so that they consider the plane their best seller in the aerospace company’s history. The numbers show that there have been more than 4,800 orders made by clients. A closer look at the numbers will show you that the deliveries have been made to more than 100 customers scattered around the globe.
It’s safe to say that the week just ended has been quite an action-packed one for Boeing. The company also announced that they were working on a deal with Embraer, a renown Brazilian jet manufacturer.
The joint venture was revealed to be worth $4.2 billion. However, a Brazilian judge recently delivered a verdict blocking the move going through. The judge expressed that he was not convinced that the spinoff firm was actually acting with the country’s best interests at heart.
Despite the setback, Embraer has been quick to point out that they are going to seek redress on the matter and continually seek the consent of the Brazilian government.
Many analysts who have been monitoring the entire situation believe that Boeing’s new partnership with Embraer is a direct attempt at taking on Airbus. Especially when you consider that the fact that the European aerospace company actually purchased gigantic stakes in the Bombardier C-series airplane.
In the last year, Boeing actually established a standalone division mandated with the responsibility to come up with a $50 billion business charged with providing services to both defense and civil planes. The services availed include wind forecasts, repairs and maintenance, parts provision and crew rostering.
More recently, jetliner services have been streamlined to fall into the same boat as plane sales. All unified under Ihssane Mounir, who serves as the senior vice president and doubles up as the top sales chief.
Onlookers believe that the moves were made to bolster profits registered and in turn facilitate Boeing to sell high-margin services whilst engaging in the aircraft industry.
Their combined worth stands at $5 trillion, accrued over 20 years. Following the Boeing changes, Airbus is currently lagging behind when it comes to bringing sales together. However, the company is aggressively working on enhancing their service dispensation.
Analysts have shared that the probability of Boeing attracting a new market and achieving success with the 787 is heavily contingent on the company managing to clip the wings of the A330, which is an old competitor.
Some industry sources in Europe have gone as far as speculating that Boeing purposefully slashed prices on the 787 in a bid to kill the A330 competition. However, Mounir has refuted such claims by stating their strategy has never leaned on dropping prices.
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